Kitazawa Sangyo Co., Ltd. (9930) AI Stock Analysis

• Market Cap: ¥6.49B
• Dividend Yield: 2.29%
• Average Volume (3M): 8.91K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.49
• Revenue Growth: -5.85%
• EPS Growth: -17.41%
• Country: JP
• Employees: 419
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 9.63
• Shares Outstanding: 23,818,256
• 10 Day Avg. Volume: 8,120
• 30 Day Avg. Volume: 8,906
• PEG Ratio: -3.99
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -9.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥389.00 ▲(11.46% Upside)

Kitazawa Sangyo's overall stock score reflects strong financial health and reasonable valuation, offset by mixed technical indicators and cash flow challenges. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low financial leverage enhances the company's ability to withstand economic downturns and invest in growth opportunities.

Profitability

Improved net profit margins reflect better cost control and operational efficiency, contributing to sustainable long-term profitability.

Equity Growth

Growing stockholders' equity suggests effective asset management and adds to the company's financial resilience and growth potential.

Negative Factors

Revenue Growth Challenges

Volatile revenue growth can indicate market instability or competitive pressures, potentially impacting long-term revenue stability.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to invest in new opportunities and may strain liquidity if not addressed.

Earnings Conversion to Cash

Challenges in converting earnings to cash can affect liquidity and operational flexibility, impacting the company's financial health.

Kitazawa Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kitazawa Sangyo Co., Ltd. sells food processing machinery and cooking equipment in Japan. The company is also involved in the sale of confectionery and bakery equipment; design, manufacture, and sale of kitchen equipment, freezing/refrigeration equipment, and food processing equipment; and inspection, maintenance, and repair of kitchen equipment. In addition, it engages in the design and construction of hotels and restaurant kitchens, as well as lunch facilities in hospitals, schools, etc.; and sale of commercial furniture. The company was founded in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kitazawa Sangyo generates revenue through multiple streams, primarily from the wholesale distribution of its diverse product lines, which include apparel and home goods. The company capitalizes on its established relationships with manufacturers to secure favorable pricing, enabling it to maintain competitive margins. Additionally, the retail segment of the business contributes to its earnings by directly selling products to consumers through physical stores and online platforms. Strategic partnerships with key suppliers enhance product offerings and ensure a steady supply chain, while effective marketing initiatives and customer engagement strategies help drive sales growth. Seasonal promotions and collaborations with popular brands further boost revenue during peak shopping periods.

Kitazawa Sangyo Co., Ltd. Financial Statement Overview

Summary

Kitazawa Sangyo demonstrates strong financial performance with healthy profitability and a robust balance sheet. However, challenges in cash flow management and erratic revenue growth slightly dampen the overall financial outlook.

Income Statement

Kitazawa Sangyo's income statement shows stable revenue with moderate growth and strong profitability. The gross profit margin has been consistently healthy, reflecting efficient cost management. Net profit margin has improved, indicating enhanced operational efficiency. However, slight volatility in revenue growth suggests market challenges.

Balance Sheet

The balance sheet reveals a robust equity position with a favorable debt-to-equity ratio, indicating low financial leverage. Consistent increases in stockholders' equity reflect strong asset management. The company maintains a high equity ratio, showcasing balance sheet strength and financial stability.

Cash Flow

Cash flow analysis indicates challenges with free cash flow, which has been negative recently, reflecting higher capital expenditures. The operating cash flow to net income ratio suggests potential issues in converting earnings to cash, which may affect liquidity. However, the company has maintained positive cash flow from operations in prior years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.04B	15.56B	16.47B	16.22B	15.60B	14.30B
Gross Profit	4.53B	4.53B	4.61B	4.36B	4.00B	3.66B
EBITDA	1.21B	1.30B	1.32B	1.02B	658.39M	340.61M
Net Income	477.95M	648.48M	665.20M	455.48M	154.66M	-37.91M
Balance Sheet
Total Assets	17.72B	18.09B	18.83B	17.25B	16.75B	16.79B
Cash, Cash Equivalents and Short-Term Investments	4.13B	3.88B	5.17B	4.08B	4.44B	4.09B
Total Debt	2.10B	2.10B	2.12B	2.12B	2.12B	2.12B
Total Liabilities	7.01B	7.30B	8.50B	7.89B	7.84B	7.75B
Stockholders Equity	10.71B	10.78B	10.34B	9.36B	8.90B	9.03B
Cash Flow
Free Cash Flow	0.00	-656.12M	1.19B	-144.58M	429.48M	281.82M
Operating Cash Flow	0.00	-260.12M	1.44B	341.76M	552.04M	543.39M
Investing Cash Flow	0.00	-864.56M	-259.28M	-605.38M	-111.56M	-274.86M
Financing Cash Flow	0.00	-167.72M	-92.97M	-92.97M	-92.97M	-92.98M

Kitazawa Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 349.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9930, the sentiment is Negative. The current price of 349 is below the 20-day moving average (MA) of 352.35, below the 50-day MA of 359.86, and below the 200-day MA of 366.34, indicating a bearish trend. The MACD of -3.32 indicates Negative momentum. The RSI at 37.18 is Neutral, neither overbought nor oversold. The STOCH value of 78.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9930.

Kitazawa Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7722	82 Outperform	¥12.72B	7.90	―	3.37%	22.71%	442.11%
6346	80 Outperform	¥7.40B	10.34	―	2.42%	3.68%	-14.90%
6402	73 Outperform	¥8.88B	9.64	―	2.15%	-0.94%	6.93%
5903	69 Neutral	¥6.79B	10.62	―	3.51%	4.29%	3.00%
9930	64 Neutral	¥6.49B	12.69	―	2.29%	-5.85%	-17.41%
7435	64 Neutral	¥8.30B	10.75	―	3.30%	6.86%	725.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%